Shares of Groww, a leading retail brokerage platform in India, increased by more than 4% to reach a new 52-week high of ₹204.30 following the initiation of coverage by BofA Securities with a 'Buy' rating. The brokerage set a price target of ₹235, suggesting a potential upside of approximately 15% from the current levels. BofA Securities highlighted that Groww, operated by Billionbrains Garage Ventures, is well-positioned to benefit from the growing trend of retail investing in India, projecting a 30% CAGR in revenue from FY26 to FY28. The firm noted Groww's exceptional profitability, forecasting EBITDA margins to rise to 67% and PAT margins to 52% by FY28, distinguishing it from its competitors. However, BofA also pointed out two key risks: potential declines in broader capital market conditions affecting transaction volumes and the upcoming expiry of a six-month post-IPO lock-in period, which may lead to increased selling pressure from early investors. Notably, last month, JPMorgan also initiated coverage on Groww with an 'overweight' rating and a price target of ₹210. Groww commands a 28% market share among active clients, significantly ahead of its next competitor at 15%, supported by its user-friendly interface and strong word-of-mouth referrals.